TORONTO — Despite recent stock market volatility, and objections from opposition parties, the initial public offering of shares in Hydro One Ltd. is expected to go ahead later this year.

On Friday, the Ontario government filed a preliminary prospectus for Canada’s biggest IPO in more than 15 years.

Ed Clark, who is advising the government on asset sales and spearheaded the gradual sale of up to 60 per cent of the utility giant to the public, said the Hydro One IPO has an advantage over other share issues: yield.

“This … is in fact a favourable environment for yield stocks, which is what this is,” Clark told reporters at a briefing.

Bill Ainley, a senior partner in the capital markets practice at law firm Davies Ward Phillips & Vineberg in Toronto, said he doesn’t expect the Hydro One IPO to face problems barring a major new development in the markets.

“The IPO market in Canada isn’t too bad, and Hydro One will present a very stable earnings stream for yield conscious equity investors,” he said.

Choppy markets are weighing on some companies considering public offerings, said an investment banker who is not involved in the Hydro One deal and spoke on condition that he would not be named. However, companies willing to pay a healthy dividend would be the “first ones out the door” in the IPO market, he said.

If market conditions deteriorate, companies could cut price expectations to get a deal done if that’s the priority, the banker added.

Clark acknowledged that global and market events could have an impact on the price Hydro One shares ultimately attract.

“What the world will be like in the end of October or early November, when we price it, we’ll have to see,” he told reporters at Friday’s briefing.

The government has said it hopes the initial sale of 15 per cent of the utility will fetch about $2.25 billion for the province.

The bankers behind Hydro One’s market debt are expected to conduct a marketing roadshow in October, according to the 326-page preliminary prospectus filed this week.

The prospectus details a governance agreement that will guide Ontario’s role under the new structure.

“With respect to its ownership interest in Hydro One Limited, the Province will engage in the business and affairs of Hydro One Limited as an investor and not a manager,” the document states, adding that Ontario intends to achieve policy objectives through legislation and regulation, “as it would with respect to any other utility operating in Ontario.”

The planned public offering is moving forward despite objections raised by opposition parties of Ontario Premier Kathleen Wynne’s Liberal government. They have suggested there will be less scrutiny as a large stake in the public utility is passed into private hands, and customers could end up paying more for hydro.

Those in favour of the transformation counter that improved productivity and the recruitment of private-sector talent to Hydro One will drive down rates and be good for investors.

Last month, Mayo Schmidt, former chief executive of Viterra Inc., was hired to take over as CEO of Hydro One, effective Sept. 3. Former Maple Leaf Foods Inc. chief financial officer Michael Vels, who has experience in merger and acquisitions, and capital raising, was hired as Hydro One’s CFO in July.